Nigeria 15th worst place to do business

A global index agency, Ashish J. Thakkar Global Entrepreneurship Index of 85 countries, has ranked Nigeria as the 15th worst place to do business globally. The country was ranked 70 out of the ranked countries. Singapore was rated as the best environment for entrepreneurs.

In Africa, Namibia remains the best, coming 42 ahead of other prominent African markets, such as Kenya and South Africa, and of course Nigeria.

The ranking based on research conducted by Mara Foundation and Opinion Research, examines the state of entrepreneurship around the world. Inaugural index features special ‘Focus on Africa’ section, with a deeper look at ‘women in the workplace’ and ‘youth unemployment’.

The inaugural Ashish J Thakkar Global Entrepreneurship Index measures entrepreneurial environments around the world and assesses each of its 85 countries against a set of criteria that spans policy, infrastructure, education, entrepreneurial environment and finance.

The African nations, Namibia ranks 42nd overall, Rwanda 43rd, Botswana 44th and South Africa 46th – all of which perform well on the ‘Policy’ pillar but have some way to go to improve on infrastructure and education in particular.

The top two African countries in the Index, Namibia and Botswana are stronger on the education pillar because of comparatively higher levels of literacy and quality in education. Both countries have made education central to their development.

Rwanda scored highly on the Policy and Finance Pillars driven by government initiatives to increase the ease of doing business. Credit is easily available and business transparency is high.

Zambia scored particularly well on the Finance Pillar (72) primarily because of the availability of credit and a low total tax rate.

Zambia, South Africa and Rwanda, the top three countries in Africa on the Finance pillar, stand head and shoulders above their peers, with scores of 72, 66 and 65 respectively. This places Zambia in the top 10 of all countries globally on the Finance Pillar, just behind the USA (78).

Significant challenges exist in terms of Africa’s political stability, underdeveloped infrastructure, poor education and under-diversified economies. Comparatively, lower scores for infrastructure are primarily driven by a lack of electrical access and the technology that comes with reliable access to energy, such as telecommunications and internet access. Lower scores for education are due to the overall quality of education and lower literacy rates. Boosting opportunities for a quality education is imperative for increasing the region’s quality of entrepreneurs and start-ups and providing a suitable workforce.

While much of western Europe does well overall in the Index, Greece and Spain rank relatively low (34th and 50th respectively).

Both nations are continuing to reel from the after-effects of the financial crisis, which have been exacerbated by poor levels of entrepreneurial opportunities.

The Executive Director, Rona Kotecha, and Mara Foundation said: The Ashish J. Thakkar Global Entrepreneurship Index offers a powerful insight into various elements, which impact entrepreneurship globally. Whilst Mara Mentor enables and empowers entrepreneurs, the Index and its 20 policy recommendations are designed to provide a starting point for changes that can be implemented to create more effective entrepreneurial environments. This, in turn, will lead to job creation and a positive impact on economies around the world.”

The Ashish J Thakkar Global Entrepreneurship Index 2016 is the brainchild of serial entrepreneur, Ashish J Thakkar, who started his first business at the age of 15. The Index is a Mara Foundation initiative that has been developed with support from independent research consultancy Opinion to create a wide-ranging and thorough analysis of the state of entrepreneurship globally.

Ashish J Thakkar, Founder, Mara Group & Mara Foundation said: “Through the work of Mara Group over the past 20 years, I have come to recognise the immense contribution that entrepreneurs make to economies and societies around the world – particularly in relation to job creation. In recent years, however, it has become more and more apparent that governments and the private sector are simply not doing enough to support entrepreneurs in their endeavours. With the creation of this Index, we hope to provide some solid policy recommendations that will help guide discussions and improve entrepreneurial environments globally.”

The President of the African Development Bank, Akinwumi Adesina said: “I commend Ashish J. Thakkar and the Mara Foundation for creating this timely index. It provides useful insights on how Africa can unlock the potential of its youth and boost entrepreneurship.

“As populations are aging rapidly in much of the rest of the world, Africa can reap the economic dividends of its growing labour force. Africa is poised to become the next centre for entrepreneurship, but we must provide Africa’s youth with the required skills and create an environment that will enable them to become the business leaders of tomorrow”, Adesina said.